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2022 Supreme(AP) 525

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
D.RAMESH, J.
Smt. Tummidi Bala Nagamani – Appellant
Versus
The State of Andhra Pradesh – Respondents
WRIT PETITION NO.17394 OF 2021
Decided On : 29-09-2022

Advocates appeared:
S.V.S.S.SIVA RAM, N VIJAY, Advocates

The unilateral cancellation of a registered gift deed is void and non-est, as it violates the provisions of Rule 26(i)(k)(i) of the Registration Rules and Section 126 of the Transfer of Property Act, 1881.

Headnote:

REGISTRATION ACT - CANCELLATION OF GIFT DEED - UNILATERAL CANCELLATION - VALIDITY - RULE 26(I)(K)(I) OF THE REGISTRATION RULES - APPLICABILITY - SECTION 126 OF THE TRANSFER OF PROPERTY ACT, 1881 - INTERPRETATION.

Fact of the Case:

The petitioner, who was the donee of a registered gift deed executed by the 4th respondent, challenged the registration of a cancellation deed executed by the 4th respondent unilaterally, without the petitioner's consent. The petitioner contended that the cancellation of the gift deed was illegal and void, as it violated Rule 26(i)(k)(i) of the Registration Rules, which prohibits the registration of cancellation deeds of previously registered deeds of conveyance on sale without the consent of all the executants and claimant parties to the previously registered deed.

Finding of the Court:

The court held that Rule 26(i)(k)(i) of the Registration Rules applies to all types of registered deeds of conveyance, including gift deeds, and not just to sale deeds. The court also held that the unilateral cancellation of a registered gift deed is void and non-est, as it violates the provisions of Section 126 of the Transfer of Property Act, 1881, which requires the consent of the donee for the revocation of a gift.

Issues: 1. Whether Rule 26(i)(k)(i) of the Registration Rules applies to gift deeds? 2. Whether the unilateral cancellation of a registered gift deed is valid?

Ratio Decidendi: 1. The court interpreted Rule 26(i)(k)(i) of the Registration Rules and held that it applies to all types of registered deeds of conveyance, including gift deeds. The court reasoned that the rule uses the broad term "conveyance" and not just "sale deed", and that the purpose of the rule is to protect the rights of all parties to a registered deed of conveyance. 2. The court also interpreted Section 126 of the Transfer of Property Act, 1881, and held that it requires the consent of the donee for the revocation of a gift. The court reasoned that the section uses the term "revocation" and not just "cancellation", and that the purpose of the section is to protect the rights of the donee.

Final Decision: The court allowed the writ petition and set aside the registration of the cancellation deed. The court also directed the 3rd respondent to cancel the execution of the cancellation deed expeditiously.

ORDER

The present writ petition is filed aggrieved by the action of the 3rd respondent in registering the Cancellation Deed dated 23.04.2021 bearing document No.1858 of 2021 executed by the 4th respondent whereunder she cancelled the Gift Settlement Deed dated 31.03.2021 bearing Document No.1166 of 2021 executed by her in favour of the petitioner as illegal, arbitrary, without jurisdiction, contrary to the provisions of the Registration Act, 1908 and the Rules made there under specifically Rule 26(i)(k)(i) ratio laid down by the Hon'ble Apex Court in Thota Ganga Lakshmi and Anr. vs. Government of Andhra Pradesh and another reported in 2010 (15) SCC 207 besides being violative of Articles 14, 21 and 300A of the Constitution of India and consequently set aside the same.

2. As per the averments made in the Writ Petition, the case of the petitioner in brief is as follows:

    The petitioner is the absolute owner of land admeasuring Ac.6.10 cents in R.S.No.241 situated at Annadevarapeta Village & Panchayat, Tallapudi Mandal, West Godavari District. Said property has been conveyed to petitioner by the 4th respondent, who is a co-sister, through a registered Gift Settlement Deed dated 31.03.2021 bearing Document No.1166 of 2021 registered before the office of Joint Sub-Registrar, Vegeswarapuram, West-Godavari District. The said gift deed was acted upon and the 4th respondent handed over the possession of the said property on the same day, i.e., on 31.03.2021. Since then, the petitioner has been in absolute peaceful possession and enjoyment of the said property. Subsequently, the petitioner submitted applications by enclosing the said gift deed before the revenue authorities for mutating the petitioner's name in the relevant records and upon verification of records as well as his possession, petitioner's name has been mutated /updated in revenue records.

3. Later, the petitioner has reliably learnt that the 4th respondent, with the assistance and connivance of her husband Mr. Tummidi Bulli Govinda Raju and in active collusion and conspiracy with 3rd respondent brought into existence a document styled as Cancellation Deed of Document No.1166 of 2021 and presented it before the 3rd respondent unilaterally to cancel the gift deed without the knowledge or notice to the petitioner and the same was registered on 23.04.2021 vide document No.1858/2021 by the 3rd respondent in respect of the said property. Having come to know the same, the petitioner has got issued legal notice to the respondents 2 to 4 stating that the unilateral cancellation of a registered gift deed is illegal besides being contrary to the Act and Rules made there under, but the respondents did not respond to the notice. Though the 4th respondent issued reply to the legal notice, with baseless allegations which are irrelevant. Thus assailing the action of the 3rd respondent in entertaining the cancellation deed and registering the same, the present Writ Petition is filed.

4. Learned counsel appearing for the petitioner referred to Rule 26(i) (k) of the Rules framed by the Government of Andhra Pradesh in terms of the powers vested in it under the Registration Act, which prohibits registration of cancellation deeds unilaterally. The rule is extracted hereunder for better appreciation:

    “Rule 26 (i) (k)(i) :

The Registration Officer shall ensure at the time of presentation for registration of cancellation deeds of previously registered deed of convevances on sale before him that such cancellation deeds are executed by all the executants and claimant parties to the previously registered conveyance on sale and that such cancellation deed is accompanied by a declaration showing mutual consent or orders of a competent Civil or High Court or State or Central Government annulling the transaction contained in the previously registered deed of conveyance on Sale:

Provided that the Registering Officer shall dispense with the execution of cancellation deeds by executants and claimant parties to th

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